Freddie Mac Single-Family Seller/Servicer Guide 5604.4 — Reviewing appraisal reports, reconsideration of value requested by the Borrower, obtaining subsequent appraisal reports and reconciling multiple

opinions of market value (09/03/25) This section contains: ■ Appraisal report review requirements ■ Reconsideration of value (ROV) requirements ■ Requirements for obtaining subsequent appraisal reports, appraisal desk review reports and appraisal field review reports ■ Reconciling multiple opinions of market value ■ Mortgage file documentation and delivery data

(a) Appraisal report review requirements (i) Seller responsibility The Seller must evaluate the appraisal report to determine whether it meets the requirements of this topic and the Seller’s other Purchase Documents and whether the opinion of market value is credible and adequately supported. The Seller must ensure valuation and related staff, inclusive of third parties (e.g., appraisal management companies, fee-appraisers, review appraisers, underwriters) are trained to identify prohibited discriminatory practices and appraisal deficiencies (including the unacceptable appraisal practices in Section 5603.4) through the valuation review and ROV processes. The Seller must have a process for remediating any deficiencies. (ii) Deficiency remediation and appraisal report rejection Before rejecting an appraisal report, the Seller must request the appraiser to provide additional information and/or address any deficiencies with the appraisal report. If the appraiser does not address the Seller’s concerns and the Seller is unable to conclude the appraisal report meets Freddie Mac requirements, the appraisal report must be rejected, and a new appraisal report must be obtained.

(b) ROV requirements For Mortgages requiring delivery with an appraisal report, the Seller must have in place policies and procedures that address requests for an ROV that meet, at a minimum, the following requirements and any requirements required under applicable local, State or federal law. Freddie Mac’s ROV requirements are minimum standards. If State law or regulation requires more than Freddie Mac’s guidelines, the State law or regulation controls. The ROV process must include a review and resolution procedure, including steps for the Borrower(s) to appeal an appraisal report’s findings when the Borrower(s) believes the appraisal report or the appraiser’s opinion of value is unsupported, may be deficient due to an unacceptable appraisal practice, or reflects discriminatory practices. The Seller remains responsible for ensuring that the opinion of market value is credible, and the appraisal report meets the requirements of the Seller’s Purchase Documents. In addition, the Seller’s ROV policies and procedures must: ■ Provide for a disclosure to the Borrower(s) outlining the ROV process upon delivery of the appraisal report to the Borrower(s). ❑ The disclosure must include instructions for requesting the ROV ❑ The requirements for Borrower submissions of information are the same as those included in the standardized format for submission to the appraiser as described below. ■ Ensure the Seller completes its appraisal review before initiating the ROV process ■ Provide a standardized format for providing the rationale, requirements and supporting documentation for the ROV outcome to be communicated to the appraiser. This must include: ❑ Reporting the Borrower(s) name, property address and the effective date of the appraisal, appraiser’s name and date of the ROV submission ❑ Identifying specific issues and deficiencies in the appraisal report ❑ Providing detailed information, data or alternative comparable properties (maximum of five alternative comparables are permitted), including the source of the data (e.g., multiple listing service listing or publicly available information) and the rationale for the inclusion of the alternative comparables, information or data, as applicable ■ Ensure the ROV request is accurately completed and includes sufficient detail to warrant reengagement of the appraiser. If the ROV request is unclear, deficient or requires additional information, the Seller should remediate with the Borrower(s), as applicable. ■ Instruct the appraiser to deliver a revised appraisal report that includes specific commentary explaining their conclusions to the ROV request, regardless of whether the appraiser determines that changes are not needed to address the issues identified in the ROV ■ Define turn-time expectations for communicating results of the ROV to the Borrower ■ Specify that one Borrower-initiated ROV is permitted per appraisal ■ Ensure documentation related to the outcome of the ROV is retained in the Mortgage file ■ Note that once a loan is closed, an ROV request is no longer permitted ■ Not conflict with Exhibit 35, Appraiser Independence Requirements If material deficiencies are identified in the appraisal report that are not corrected or addressed by the appraiser upon request, or if there is evidence of unacceptable appraisal practices as outlined in Section 5603.4, the Seller must forward the appraisal report, along with a summary of findings, to the appropriate appraisal licensing agency or regulatory board. Additionally, if there are suspected overt violations of antidiscrimination laws, the lender must report it to the proper local, State or federal agency. In the event of these occurrences, the lender may obtain a second or subsequent appraisal report in adherence to Freddie Mac requirements and local, State and federal laws.

(c) Requirements for obtaining subsequent appraisal reports, appraisal desk review reports and appraisal field review reports Exhibit 35 provides that the Seller must not order, obtain, use or pay for a subsequent appraisal report, in connection with a Mortgage financing transaction unless: ■ There are indicators the initial appraisal report was inaccurate, not credible or in violation of legal and/or professional standards related to nondiscrimination and such indicators are clearly and appropriately noted in the Mortgage file ■ The subsequent appraisal is done pursuant to written, pre-established bona fide pre- or post-funding appraisal review or quality control processes or underwriting guidelines, and so long as the Seller adheres to a policy of selecting the most reliable appraisal, rather than the appraisal that states a particular value; or ■ A subsequent appraisal is required by law

(d) Reconciling multiple opinions of market value If the initial appraisal report was not rejected and a subsequent appraisal report, appraisal desk review report or appraisal field review report is obtained in compliance with the requirements of this chapter and the Seller’s other Purchase Documents, the Seller must use the most credible opinion of market value.

(e) Mortgage file documentation and delivery data The Seller must retain in the Mortgage file copies of all documents used in the valuation analysis, as well as written documentation justifying the Seller’s decision as to which appraisal report (or appraisal desk review report or appraisal field review report) was used to underwrite the Mortgage. The value used to underwrite the Mortgage is the basis for the Seller’s value warranty and is the value that must be provided to Freddie Mac as part of the delivery data. If the appraisal report used to underwrite the Mortgage can be submitted to the Uniform Collateral Data Portal® (UCDP®), the appraisal report must be submitted to the UCDP and receive a “Successful” status prior to delivery of the Mortgage. See Section 5606.2 for more information on UCDP.